Armour Energy rejects takeover bid

Australia's Armour Energy Ltd. has recommended that shareholders reject the takeover bid lodged by WestSide Corp. Ltd. (a subsidiary of Landbridge Group Co. Ltd.) of $0.0845 (AUD 0.12) per Armour share, as it undervalues the company both in terms of its existing assets, and the potential value the company expects to deliver to its shareholders in the near future.

Executive Chairman Nicholas Mather said, “The offer does not reflect the current or potential value of Armour’s assets and comes at a time when the company is in the process of decisively rebuilding its business and in the context of increasing demand for gas in Australia.”

Armour is also on the verge of undertaking two value-enhancing transactions which the board believes are key in unlocking the potential which exists in Armour’s asset base and Armour’s position in the Australian gas market – specifically, a proposed transaction with American Energy Partners, which would provide a basis to progress and add value to Armour’s Northern Territory assets; and an agreement to acquire the Roma Shelf assets from Origin Energy, which will provide a further basis for growth and future cash flow.

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